Question: Milano Co. is considering two mutually exclusive projects with the same cost of capital of 13%. The estimated net cash flows are as follows: Year

Milano Co. is considering two mutually exclusive projects with the same

Milano Co. is considering two mutually exclusive projects with the same cost of capital of 13%. The estimated net cash flows are as follows: Year 0 1 Project X -$490 $280 $250 $110 Project Y -$540 $310 $650 -$320 2 3 a) Calculate the NPV for each project. Explain which project you would choose, if any, using the NPV criterion. (2 marks)

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